ECON 1010H Chapter Notes - Chapter 3: Marginal Cost, Relative Price, Opportunity Cost
15 Oct 2016
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Document Summary
A markets has two sides: buyers and sellers. There are markets for goods, services, for factors of productions, and for other manufactured inputs. Some markets are physical places where buyers and sellers meet. Some markets are groups of people spread around the world who never meet but are connected through the internet or by telephone and fax. Most markets are unorganized collections of buyers and sellers. Markets vary in the intensity of competition that buyers and sellers face. Competitive market a market that has many buyers and many sellers, so no single buyer or seller can influence the price. Producers offer items for sale only if the price is high enough to cover their opportunity cost. Money price the number of dollars that must be given up in exchange for a good or service. Relative price the ratio of one price to another: also called opportunity cost.
